Determine net present value-indicate whether investment

Assignment Help Financial Accounting
Reference no: EM131208206

Hsung Company accumulates the following data concerning a proposed capital investment: cash cost $207,306, net annual cash flows $40,800, present value factor of cash inflows for 10 years 5.22 (rounded). (If the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45).) Determine the net present value, and indicate whether the investment should be made.

Reference no: EM131208206

Questions Cloud

Considering purchasing one of two new diagnostic machines : BAK Corp. is considering purchasing one of two new diagnostic machines. Either machine would make it possible for the company to bid on jobs that it currently isn’t equipped to do. Estimates regarding each machine are provided below. Calculate the ne..
Explain the difference between conflict and competition : Describe a situation where competition could lead to conflict and might not be healthy. What methods could you use to resolve the conflict? What leadership techniques would you use to resolve a conflict?
Inverse demand equation : Suppose that the inverse demand equation isp =100minus2Q and the supply equation isp =2Q.If the price is controlled at $35,this is a price ceiling. In this market, there will be a shortageof 10units (enter your response as a real number rounded to..
Economic implications of action in the labor markets : What are the economic implications of this action in the labor markets? Use graphs as needed and explain your answers thoroughly.
Determine net present value-indicate whether investment : Hsung Company accumulates the following data concerning a proposed capital investment: cash cost $207,306, net annual cash flows $40,800, present value factor of cash inflows for 10 years 5.22 (rounded). (If the net present value is negative, use eit..
How is the soil being loosened and carried away : How is the soil being loosened and carried away? What is being done with the excavated soil? What type of foundation is being installed? What provisions are being made for keeping the substructure permanently dry?
Explain methods whereby training materials can be delivered : Describe the methods whereby training materials can be delivered to the users of the software system. Explain the ways in which software can be supported after it is implemented/released.
Compare the strengths and weaknesses of each system : Unitary systems concentrate the power within the central government and little or no authority is granted to the component areas. In contrast, federal systems allow first-order civil divisions to have some autonomy, while the central government ma..
What is the max inventory level : 1) What is the max inventory level? 2) What is the average inventory level? 3) What is the approx. number of orders per year?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Journal entry to record 2011 income tax expense

Compute taxable income and income tax payable for 2011, prepare the journal entry to record 2011 income tax expense, income tax payable, and deferred taxes.

  The gross profit

Given the information below what is the gross profit?

  Operating income change if the special order is? accepted

Tom Industries has a plant capacity of? 70,000 units and current production is? 55,000 units. At this production volume the variable cost per unit is? $30, and the fixed cost per unit is? $4.10 per unit. The normal selling price of? Tom's product is?..

  Illustrate cost allocation process using the direct method

Describe and illustrate the cost allocation process using the Direct method.

  What amount of the note payable should largo include

What amount of the note payable should Largo include in the current liabilities section of its December 31, 2011 balance sheet?

  Construct a trial balance from the cost of balances

Construct a trial balance from the cost of balances. Distinguish between capital expenditure and revenue expenditure. Explain 5 would be users of accounting information.

  What rate of return did mike earn over year

During the year he received dividends of $1.45 per share. The stock is currently selling for $60 per share. What rate of return did Mike earn over the year?

  Evaluate the correct inventory amount

Premier Bank and Trust is giving Alou Company a loan. Before doing so, management decides that added discussions with Alou's accountant may be desirable.

  Determine that the accounting principles used by m&s

What is M&S's accounting policy related to refunds and loyalty schemes? Why does M&S include the accounting for refunds and loyalty schemes in its critical accounting estimates and judgments?

  Statement of revenues and expenses - deferral method

Using the deferral method, prepare a statement of revenues and expenses and a statement of changes in net assets for Wise Owls for 20X1.

  What is the gross profit to be recognized in current year

Kyle sold land on the installment basis for $100,000. His basis in the land was $70,000. Kyle received a $40,000 down payment and a real estate installment sale contract calling for $60,000 in additional payments in future years. In addition, Kyle pa..

  What controls must have been lacking

What controls must have been lacking at White Electric Supply to enable the bookkeeper to steal nearly $416,000 before being caught?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd